The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1887-08-11
HON. A. S. CLAY,s SPEECH.

At the conclusion of Captain Gordons
remarks. Mr. Clay, Of Cobb, said, Il desire
to make statement relating to the sinking
fund bill and the funding bill. which is to
follow the sinking fund bill. These bills
are the result Of compromise reached by
the finance committee. The passage Of
these two bills commences new financial
era for Georgia. The trainers of the con
stitution of 1877 provided in that instru-
ment that the general assembly shall raise
annually 100000 as a sinking fund till the
bonded Indebtedness of the state shall have
been paid off. This is the first general as
sembly that has oeen called upon to enforce
that clause of the constitution The finance
committee has given this matter the most
careful attention, and has had great Difficult
ty IN arriving at unanimous conclusion
We all agreed that it was incumbent on the
legislature to raise the sinking fund for the
purpose of paying off the bonded indebted
ness Of the state, but the question that gave
as the most trouble was how to make our
bonds mature so that $4,000 would fall
due each year that the sinking fund might
not be idle in the treasury, but be promptly
applied to our Indebtedness, for it is wise
policy that the people shall not be taxed for
the purpose of keeping a large surplus in
the treasury.
THE BONDED INDEBTEDNESS
'The bonded Indebtedness of Georgia
amounts to $o4S0, 800. S2,l4l 600 will
fall due in 1899, 81, 09s goo in 1890; 1907
500 in 1892 $542 900 in 1891 and the bal
ance, S., 592 600 in 1915.
1T is almost impossible to consider the
sinking fund bill, without considering the
funding bill IN connection with il, for when
you make provisions for raising money to
pay off the obligations of the state, those
Obligations should be made to tail due so
that the money can be put out Immediately
after 1t comes into the treasury, for no
greater curse could befal Georgia than TO
allow large sinking fund Ito accumulate in
her treasury to be loaned out solelyto bond
holders at + per cent interest, to be loaned
cut by the same bondholders to the people
OF Georgia at an eXhorbitant rate of inter
est The state should not accumulate mon
ey in her treasury for the purpose of loan
ing it out.
For myself, sincerely hoped we would
put in operation a scheme that would pro
vide for the raising OF 100000 annually as
prescribed by he constitution till the pub
lie debt was eXtingushed, and that we SO
fund our immature bonds as to make $780,
600 due on the first Of January each wear.
50 that not dollar of the money raised by
taxation from the people of Georgia would
be idle in the treasury or be loaned to the
bondholders Of the state This theory is
known as the Harrel theory and meets my
hearty approval, and met the approval OF
about one-halt OF the finance committee.
In spirit Of compromise we hayeall agreed
simpIy to fund the -, l,000 falling due in
1890 so as TO make 500 000 due each year.
making the last series Of bonds due in 1916,
thus arranging for the sinking fund to be
paid out each year as the money is collect
ed til 1916, adopting, in fact, the Harrell
scheme. In dealing for the state we should
be governed by the same busineas principles
as II tlansaotln5 our own private affairs
No business man would keep money idle
in his safe when he had an outstanding note
drawing interest We have iuaugurated a
grand scheme Let us hope that future
legislatures will see the wisdom Of our
course Then we may hope to see the last
dollar Of our Indebtedness paid and paid as
the money is collected without any great
burden upon the people | hope this com
promise measure will meet the approval Of
all the house